By Kenneth Lim
Boston, March 30 - Eddie Bauer Holdings Inc. priced $75 million of seven-year convertible senior notes richer than talk on Thursday to yield 5.25% with an initial conversion premium of 25%.
The convertibles were offered at par and priced after the market closed. They were talked at a coupon of 5.5% to 6% and an initial conversion premium of 20% to 25%.
JP Morgan was the bookrunner of the Rule 144A offering.
The notes are non-callable, and there are no puts.
There is a contingent conversion trigger at 120% of the conversion price.
The convertibles will have dividend and takeover protection.
Eddie Bauer, a Redmond, Wash.-based retailer of casual sportswear and outdoor accessories, plans to use the proceeds of the deal to partially repay a term loan that will be amended and restated concurrently with the offering.
| Issuer: | Eddie Bauer Holdings Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | JP Morgan
|
| Amount: | $75 million
|
| Greenshoe: | None
|
| Maturity: | April 1, 2014
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Conversion premium: | 25%
|
| Conversion price: | $13.55
|
| Conversion ratio: | 73.8007
|
| Contingent conversion: | 120%
|
| Cash settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 5.5%-6%, up 20%-25%
|
| Pricing date: | March 29, after the close
|
| Settlement date: | April 4
|
| Guarantees: | By operating subsidiary Eddie Bauer Inc. and other domestic subsidiaries
|
| Distribution: | Rule 144A
|
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